IDC backs R270m Gqeberha hotel as tourism arrivals hit 10,5 million
The 145-room Capital development brings more than 200 jobs to Nelson Mandela Bay and marks the state financier's second tourism project with the group.
South Africa drew a record 10,5 million international visitors in 2025, a 17,7% rise on 2024, and the Industrial Development Corporation has put its money behind the beds they will sleep in.
The state financier and the Capital Hotels Group have launched a R270 million development in Gqeberha, adding 145 hotel rooms and apartments with access to the Boardwalk casino, a beachfront and a shopping centre.
Marc Wachsberger, chief executive of Capital Hotels, Apartments and Resorts, said the partnership has created more than 200 jobs in a region facing high unemployment.
“Gqeberha being the economic capital of the Eastern Cape province is driven by a myriad of industries spanning manufacturing, seaport activity, education, among other factors,” he said. “The marine and seaport economy has transformed the city into a major manufacturing hub catapulted by the Coega SEZ.”
He pointed to the R11 billion BAIC vehicle assembly plant and Aspen’s manufacturing facility, which he described as one of the largest manufacturing hubs for general anaesthetics in the world.
The numbers behind the bet
Tourism contributes nearly 9% of South Africa’s gross domestic product and supports roughly 1,8 million direct and indirect jobs. Travellers from African countries made up the majority of international arrivals in 2025, sustaining employment in communities across the country.
Kagisho Bapela, the IDC’s head of services, said the sector supports more than 948 000 jobs and contributes significantly to local GDP.
“This sector is critical to growing our economy and creating employment opportunities,” he said. “Gqeberha has all the fundamentals to become one of South Africa’s critical economic coastal hubs.”
The IDC, which is mandated to support industrial development and job creation, said it welcomed the group’s decision to invest in one of the country’s outlying regions.
The development is Capital’s 12th investment of its kind in South Africa and the IDC’s second funded project with the group. The first was Capital Mbombela, launched in 2021.
What it means for the Eastern Cape
The new rooms add to Gqeberha’s accommodation offering and strengthen the city’s ability to attract high value leisure travellers, according to the IDC. For a metro that has built its case on manufacturing and port activity, the project widens the base.
Related IDC investments are aligned to national tourism and regional development objectives, the corporation said, positioning tourism as a priority, future facing and job rich sector.
A second project opens next
KwaZulu-Natal based Club Med SA, also funded by the IDC, is expected to open to the public in July. The corporation describes it as the biggest resort ever built in South Africa after Sun City, and expects it to shift the province’s economic fortunes.
Source: Industrial Development Corporation, The Capital Hotel Group and IDC capitalise on Gqeberha’s growth prospects
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